2022 Fiscal Year-End Close: Requisitions, Purchase Orders, and OCA Guidance FAQs

Purpose of this Article: This solution article provides the presentation deck, and responses to questions from the 2022 Fiscal Year End Close event held on Thursday, May 19, along with updated guidance re: closed FY22 Purchase Orders 

Audience: All SF Financials and SF Procurement Users

Author: Leilani Carandang 

Version/Update Date: 2.0 / July 14, 2022


July 14, 2022: Updated Guidance for Closed FY22 Purchase Orders


Department CFOs, Financial, Accounting, and Procurement Teams,


Thank you for your cooperation throughout fiscal year end. Again, we ask for your support and collaboration to please liquidate and close FY22 Purchase Orders (POs) that did not roll as soon as possible. If your department has a closed FY22 PO that has pending FY22 invoices to be paid, please recreate the POs in FY23.


If the FY22 POs fall under one or both of the following scenarios, please follow the Department Actions in the table below when recreating the POs: 

  • POs closed or in error status are still tying up contract balances 
  • The associated contracts expired on or before June 30, 2022


PO Type

Department Actions

Replacing Closed POs Originally Issued by the Office of Contract Administration (OCA)

1. Replacement PO Creation: Departments will re-create the PO in SF Procurement and identify the following information in the PO Comments: 

A) Original PO ID Number

B) Original Contract ID (if the original PO was issued against a contract)

C) PO ending balance as of June 30, 2022

 

2. Purchasing Authority for Replacement POs

  • If the original PO was issued against a contract: Enter the contract’s purchasing authority into the replacement PO. Do not enter the Contract ID!
  • If the original PO was not issued against a contract: Enter the original PO’s purchasing authority for the new PO


3. OCA Approval: Regardless of replacement PO amount, department will route PO to OCA. Insert OCA in the approval path if the PO is under $10K. Department will contact the OCA buyer on the original PO to approve the replacement PO in SF Procurement. 

Replacing Closed POs Issued by the Department against OCA Contracts

1. Replacement PO Creation: Departments will re-create the PO in SF Procurement and identify the following information in the PO Comments: 

A) Original PO ID Number

B) Original OCA Contract ID 

C) PO ending balance as of June 30, 2022

 

2. Purchasing Authority for Replacement POs: Enter the contract’s purchasing authority into the replacement PO. Do not enter the Contract ID!


3. OCA Approval: If the PO is over $10K, Department will contact the OCA buyer on the original PO to approve the replacement PO in SF Procurement.

Replacing Closed POs Issued by the Department against Non-OCA Contracts (Includes Expired or Unexpired Contracts)

1. Replacement PO Creation: Departments will re-create the PO in SF Procurement and identify the following information in the PO Comments: 

A) Original PO ID Number

B) Original OCA Contract ID 

C) PO ending balance as of June 30, 2022

 

2. Purchasing Authority for Replacement POs: Enter the contract’s purchasing authority into the replacement PO. Do not enter the Contract ID!

 

3. OCA Approval: If the PO is over $10K, it will automatically route to OCA. Contact the OCA buyer assigned to your department to approve the PO. IF you do not know who that is, contact Connie.Dantes@sfgov.org to request their name. 



FY2022 Frequently Asked Questions

Q. Are SF Reports & Analytics PO dashboards and reports dynamic or based on previous day posting?

A. All the data in SF Reports & Analytics are based on previous day postings.  They are not real time. 

 

Q. If the remaining balance on the PO is freight or sales tax, will it automatically be closed?

A. PO distribution lines will only be closed by the monthly PO Close batch process if ALL the criteria described on page 5 of the Purchase Order Reconciliation “PO Close” Criteria job aid are met.

 

Q. We have a lot of vendors that don't bill often, we don't want those POs to close.

A. Please work with your vendors as early as possible and liquidate all POs not needed by June 27, 2022. Please refer to the Understanding PO Encumbrance Liquidation Options job aid.

 

Q. The criteria for PO close seem very narrow. It feels like a lot of PO distribution can meet all those criteria, especially no activity within last 30 days. Is there a way to keep the PO distribution line available or from becoming part of the monthly close process?

A. PO distribution lines will only be closed by the monthly PO Close batch process if ALL the criteria described on page 5 of the Purchase Order Reconciliation “PO Close” Criteria job aid are met.

 

 The following manual actions can be taken to prevent the PO from closing:

  • Place the PO on hold
  • Take some action (e.g., Change Order, enter Receipt) to update the PO’s last activity date

 

    Taking these manual actions to prevent PO from closing isn’t recommended. As discussed in the Year End Close Workshop you should let the monthly PO Close batch process close PO distribution lines that meet all system criteria. Please note that POs on hold and POs with a pending Change Orders will not roll into the new fiscal year and will have to be manually liquidated.

 

Q. Is there a particular reason why closing a PO does not return the balance back to the Contract? Is it intentional to not return the balance back to the contract?

A. There are the following PO liquidation options: Close, Cancel, Reductive Change Order and PO Close Short. Please refer to the Understanding PO Encumbrance Liquidation Options job aid.

Closing a PO associated with a Supplier Contract using the Buyer’s Workbench is the only liquidation option that doesn’t return the PO Encumbrance Balance back to the Supplier Contract. We recommend using the system automation of the PO Close Short process to liquidate POs associated with Supplier Contracts before the end of the fiscal year.

 

Q. Does Pre-Contract Application also apply to Prop Q POs?

A. No. It pertains to Chapter 21 Contracts, not Purchase Orders.

 

Q. Will the checklist be required after launched? (*Asked during OCA portion)

A. No. This application replaces the checklists. 

 

Q. Usually our as-needed consultants submit the request to City for 12B approval, with this new system, do we our city workers need to enter the information ourselves? Or will the vendors enter into this kind of system and submit it themselves?

A. Suppliers enter their 12B declaration forms using the SF Supplier Portal. And they will continue doing so. This system has nothing to do with the Supplier partner portal. It has to do with the approvals and waivers departments collect when getting a contract ready for review and approval by OCA.

 

Q. Will the insurance information intergrade with SF Procurement or need to be manually updated in SF Procurement as well?

A. When we integrate with SF Procurement, we will integrate as many fields as possible. So, the likely answer is yes. 

 

Q. There was a slide from CON showing that POs tied to a supplier contract (not rolled from prior FY) should be closed out by cancelling.   However, OCA subsequently presented that POs tied to supplier contracts should be closed out by reductive change orders so that any unused funds are returned to the supplier contract. Can you clarify whether the CON message is consistent with the OCA message?

A. As you can see in the matrix on Slide 22 in the Requisitions, POs, and OCA Guidance deck attached to this solution article, cancelling as a liquidation method is only applicable when a PO line has NOT been received or vouchered.  When a PO line has never been received or vouchers, it can be cancelled, and the balance will be returned to the supplier contract.   When a PO line has been expensed, reductive change orders must be processed to return the remaining balance to the supplier contract.

 

Q. Is a “PO line cancellation” different from “Reductive Change Order”?

A. When a PO line is cancelled, the balance will be returned to the Supplier Contract.   From this sense, cancellation acts the same as reductive change orders. If a PO has been received/vouchered, users will not be able to cancel a PO line.  This leaves reductive change order as the only option to return remaining PO balances to Supplier Contract. If the system allows a user to cancel a PO line, the full PO balance will be returned to the contract when cancellation is done.   If the system does not allow a user to cancel a PO line, the user will have to do reductive change orders (either manually or through PO Close Short) to return the remaining balance to the contract.  




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